Byrna’s first quarter saw sales climb year-over-year, but the company missed Wall Street’s revenue expectations and the market reacted sharply to the underperformance. Management attributed the results to solid demand through expanding retail and dealer channels, while acknowledging weaker e-commerce conversion rates and pressure on average order values. CEO Conn Davis was candid about these challenges, noting that “conversion did not perform to our expectations in the quarter,” with Byrna.com’s online performance lagging as the company’s focus shifted toward brick-and-mortar growth. The leadership team also cited elevated marketing and legal costs as contributors to lower operating margins compared to last year.
Is now the time to buy BYRN? Find out in our full research report (it’s free for active Edge members).
Byrna (BYRN) Q1 CY2026 Highlights:
- Revenue: $29.05 million vs analyst estimates of $29.75 million (10.9% year-on-year growth, 2.3% miss)
- Adjusted EPS: $0.07 vs analyst estimates of $0.05 (40% beat)
- Adjusted EBITDA: $2.21 million vs analyst estimates of $3.33 million (7.6% margin, 33.6% miss)
- Operating Margin: 3.2%, down from 6.5% in the same quarter last year
- Market Capitalization: $151.8 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Byrna’s Q1 Earnings Call
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Jeremy Hamblin (Craig-Hallum Capital Group) asked about the expected year-over-year decline in Q2 sales, with CFO Laurilee Kearnes confirming that both overall and online sales are forecast to be down significantly, primarily due to lower retail load-in orders and weaker e-commerce conversion.
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Jeremy Hamblin (Craig-Hallum Capital Group) pressed for clarity on falling online average order values. CEO Conn Davis explained that the CL platform’s mix is lower online than in retail stores and returning visitors are purchasing more accessories rather than new launchers.
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Jeff Van Sinderen (B. Riley Securities) inquired about the move to end-cap displays at retail partners and how this impacts customer engagement. Davis responded that end-caps allow for more self-discovery and reduce purchase barriers, while in-store merchandising supports education without requiring a salesperson’s involvement.
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Jeff Van Sinderen (B. Riley Securities) questioned plans for recurring revenue products. Davis indicated that while the focus remains on the launcher platform, a new head of R&D with connected device experience has been hired, and the company will pursue organic development in this area over the next year.
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Eric Wold (Texas Capital Securities) asked why not all retailers implement in-store shooting experiences, given their success. Davis clarified that space constraints, rather than cost, are the main barrier, but interest is growing as positive data accumulates.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace and effectiveness of e-commerce conversion improvements and digital marketing shifts, (2) the impact of new retail partnerships and experiential merchandising on in-store sales growth, and (3) progress in inventory reduction and manufacturing efficiency initiatives. Additional attention will be paid to any advancements in connected devices and the success of new product launches as indicators of longer-term trajectory.
Byrna currently trades at $6.69, down from $9.20 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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